'Israelis' in Spain report frozen bank accounts amid new royal decree on Gaza

Spain’s Banco Sabadell, the country’s fourth-largest bank, is facing backlash from 'Israeli' business owners who accuse it of "discriminatory treatment" following Spain’s new decree “against the genocide in Gaza.”

'Israelis' operating in Spain say the bank has demanded they, and all their 'Israeli' clients, sign declarations confirming they do not conduct any business linked to 'Israeli' settlements, the 'Israeli' newspaper The Calcalist reported.

According to the bank, the move complies with legislation passed by the Spanish government in September, which introduced “urgent measures against the genocide in Gaza and in support of the Palestinian population.” The royal decree, No. 10/2025, includes an expanded arms embargo on 'Israel' and bans the import, export, or promotion of goods and services originating from 'Israeli' settlements.

Banco Sabadell, headquartered in Catalonia, manages about 240 billion euros in assets and employs nearly 18,700 people. But in recent days, 'Israeli' entrepreneurs with Spanish-registered companies have received warnings that funds from 'Israel' will not be released into their accounts unless they submit signed declarations. Several said the bank is applying the new law “in a far-reaching and unfair way,” and some are now exploring legal action or transferring their accounts to other banks.

One 'Israeli' businesswoman described the situation on X, saying a Sabadell manager told her she must obtain written statements from every 'Israeli' client. “Every Israeli who receives money from Israel must prove that it is clean and complies with the new law of the Spanish government,” she wrote. “A crazy situation I never believed would come to us.”

The bank’s updated requirements include a detailed form in which customers must confirm that “the export or import of the goods/services included in this transaction do not violate the restrictions set forth in Royal Decree No. 10/2025 of September 23.” They must also provide transaction details, addresses, and end-user information, and affirm that products “do not originate from Israeli settlements in the occupied Palestinian territory.”

A Sabadell representative explained that “activity has been restricted, and prior review and documentation are required before approving each transaction,” adding that every payment must now be cleared by the bank’s compliance department.

'Israeli' clients say the policy has left them unable to access their own funds. “I have more than 10,000 euros stuck that I cannot withdraw, and there are dozens of other Israelis with a similar problem,” one woman told Calcalist. “People here couldn’t pay rent or buy food.”

Critics argue that the bank is overstepping legal boundaries. “It seems they are interpreting the law in an excessive and possibly illegal way,” another 'Israeli' business owner said, noting that the decree requires only Spanish companies, not their clients, to confirm compliance with the regulations.

Some 'Israeli' activists in Spain suggest that Sabadell’s strict enforcement could be politically motivated. “It is possible that the Catalan bank is simply trying to flatter the Spanish government in order to receive regulatory help regarding the takeover issue and is therefore ‘expanding’ the law,” one activist said, referring to Banco Sabadell’s ongoing struggle against a hostile takeover bid by Spain’s BBVA Bank.